Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.
Earnings and the FED are clearly in focus for investors this week. Tomorrow we get highly anticipated results from AI Chips stalwart Nvidia. Inflation figures at the end of the week will likely reinforce that long awaited rate cuts are coming soon. In fact, in an interview with Bloomberg's Michael McKee, San Francisco FED President Mary Daily agreed with FED chair Jay Powell's view it's time to cut rates.
Well, to my mind, we've been on this path of ready to adjust policy rates for several months. We just needed to get a little more confidence and inflation was truly on its path to two percent, and I wanted to see the labor market come into balance. But I think that's completely happened and the risk to our goals are now balanced in the time to adjust policy is upon us.
Francisco FRED President Mary Daily says she and her colleagues will seek to prevent restrictive policy from harming the labor market.
Well, Nathan, as we await those earnings from Nvidia, tomorrow. Another one of the so called Magnificent Seven is making news this morning. Shares of Apple down about a quarter percent in early trading. It's longtime chief financial officer is stepping down at the end of the year. Luka Maistrie will hand his role to top deputy Kevin Perek after
more than a decade. The company has described the move as a planned transition, with Mystree remaining at the firm and a reduced role overseeing information technology and real estate functions.
Well, Karen, the saga over Paramount Global and its new ownership is taking a new twist this morning. Let's get the details from Bloomberg's Jeff Bellinger.
In New York, producer David Ellison, Skydance Media is set to become the new owner of Paramount Global. This comes after Sigrameir Edgar Bronfman Junior dropped out late last night. The Hollywood Studio says it expects to complete the deal with sky Dance in the first half of twenty twenty five. David Ellison is the son of Oracle co founder Larry Ellison. He is aiming to provide a fresh start for the parent of CBS and MTV, laden with more than fourteen
billion dollars in debt. Paramount has struggled to compete in streaming. It has also suffered as cable TV audiences canceled their subscriptions and abandoned traditional channels like CBS and Nickelodeon. It's reducing its US workforce by fifteen percent. Its shut down Paramount television studios this month in New York Jeff Bellinger Bloomberg.
Radio, all right, Jeff, thank you all. In Europe shares a BHP at almost one and a half percent. The world's biggest mining company posted profit that beat analyst estimates. Revenue from iron ore and copper increase despite a deteriorating Shinese demand outlook. We spoke with CEO Mike Henry.
In China a bit of a mixed picture.
We're seeing strong growth in a number of segments that are are portant for commodity demand in China, and that includes automobiles, machinery, infrastructure, shipbuilding, but the property sector itself, which makes up about twenty percent of steel demand, that is, it's been weak for some time. We've seen lower or fairly low levels of both sales and news starts. But the Chinese government is enacting policies that are intended to.
Address that, and BHP boss Mike Henry says he still expects China to hit its five percent growth target this year.
Look hearing that news from BHP comes as the firm behind the Chinese Online Marketplace team, who suffered a fifty five billion dollar stock route as economic headwinds take a toll on China's retailers. In the latest warning on the health of the Chinese economy, the CEO of PDD Holdings Chen Lay, said revenue and profits must inevitably decline. Reacting to the news, shares in the e commerce firm plunged by twenty nine percent yesterday, in their biggest fall on record, Well Nathan.
The White House is keeping the US China relationship in Focustional Security Advisor Jake Sullivan has arrived in Beijing for a three day visit, his first at China. He plans to meet with Foreign Minister Wangyee and raised concerns over China's support for Russia and the Ukraine War. He also plans to restate US positions on Taiwan and the South China Sea. China is likely to bring up Taiwan as well. Along with US tariffs and efforts to cut China off from advanced technology.
As far as the presidential race goes karent, we're getting more insights into Vice President Harris's economic vision from her husband. Second Gentleman Doug M. Hoff, spoke at a fundraiser in Sagharbor, New York last night. He called his wife a pro growth capitalist who wants a forward looking economy that helps everyone. Am Hoff pointed to his own career as a business lawyer, saying she understood exactly what he was doing with his clients.
Harris has rolled out an economic platform that includes expanded child tax credits and twenty five thousand dollars for first time home buyers. She has been criticized for not being as specific as past presidential campaigns.
Well Nathan A US appeals court is being asked to reinstate the classified A documents case against former President Donald Trump and Bloomberg's Nancy Lyons has the latest.
Special counsel, Jack Smith, is appealing to Florida judge's decision to toss out the criminal case charging the former president with mishandling classified documents. Judge Aleen Cannon dismissed the case last month, saying the appointment of Smith as Special Council was unconstitutional. Smith, in his appeal to the Eleventh US Circuit Court of Appeals, says Cannon's decision is at odds with long standing appointment practices in the Department of Justice
as well as across the government. Donald Trump's team is due to respond to the government's brief in a month. Then the government will have another three weeks to reply. In Washington, Nancy lyons Bloomberg Radio, all.
Right, Nancy, thank you. We're planning on covering a space launch this morning, but the first ever private spacewalk is going to have to wait. SpaceX has scrubbed this morning's schedule lift off of Polaris Don with four private astronauts on board, due to a roundside helium leake. One of those four astronauts is billionaire Jared Isaacman, who's flown with
SpaceX before and provided the funds for this mission. Isaacman and SpaceX engineer Sarah Gillis are planning to step outside the spacecraft on the third day of the flight and both perform a spacewalk. The next launch window for Pularistan is no earlier than tomorrow.
Well Nathan wall Street is beginning to sour on the outlook for crude next year, Goldman Sachs and Morgan Stanley both lowering price forecast. The two banks now foreseeing global benchmark Brent averaging less than eighty dollars a barrel in twenty twenty five. Both expect that the crude market will be in surplus, with prices trending lower over the twelve months. And checking oil right now, West Texas Intermediate is down six ten sive percent at seventy six dollars ninety three
cents a barrel. Brent is at eighty one dollars two cents. And it's time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Barr Michael good Morning, Good Morning.
Care and New Yorker has been told to keep their windows closed over the next few nights because the city will be spraying for mosquitoes to stop the spread of the West Nile virus. There are now six confirmed cases in New York City. Plans are to continue spring in Brooklyn Wednesday night into Thursday morning. This New Yorker is happy to hear about the spring.
They love me. It's something about my juicy blood. They definitely like the song. Concerned.
At least thirty states have now reported cases of West Nile. A form was held in Butler, Pennsylvania, examining the attempted assassination of former President Donald Trump and involves a bipartisan group of representatives. Republican Representative Mike Kelly of Pennsylvania, there's.
Not one person on this conference that's identifying just as a Republican or a Democrat. Where identify as members of Congress on a task force with a task to restore the faith and trust and confidence the American people have to have in our system.
With the congressman Kelly was Democratic Florida Representative Jared Muskowitz.
I look forward to getting the facts of what failed that day.
We were inches away from an American catastrophe.
Meanwhile, the Harris and Trump campaigns are arguing over where the microphone should be muted except for the candidate whose turn it is to speak during upcoming debates. The next one is scheduled on ABC September tenth. A tragic start to the new schooled year at Rice University. A student was found shot to death in her dorm room yesterday and what appears to be a murders suicide. The victim has been identified as a junior from Maryland, Andrea Rodriguez Avilla.
Rice University President Reginald the Roach.
I want all of our students, all parents in the entire Rice community to know that the Rice campus is safe and there is no media threat, and tonight we will wrap our arms around our students.
Authority say. The body of the shooter was also discovered in the dorm room with thelf inflicted gunshot wound and a note. Campus authorities believe the two were in a relationship. Finally, the NYPD boosted security as the US Open is underway in for the first time ever. Organizers expect more than a million tennis fans to attend. We'll have more with Sports and Dan Schwartzman, straight ahead global news twenty four hours a day and whenever you want it with the
Bloomberg News. Now. I'm Michael Barr, and this is Bloomberg Karen.
All right, Michael Barr, thank you, and it is time now for the Bloomberg Sports Update with Dan Schwartzman.
Dan, good morning, Good morning, Karen, Yankees opening up a three game set in Washington of a five to two win over the Nationals. Yankees getting solo home runs from Jazz Chisholm, Galaber Torres and Austin Wells.
Pitch is hit in the air to Deep Rite oh Black close the right fielder. You can forget this one. Austin Wells takes out his frustrations from two strikeouts with an absolute bomb to right field.
Kersey, a wfan Nestra Cortez picking up his eighth winn of the season, pitching six and two third strong innings.
Yankees moving two full games ahead of the Orioles in the America League East as Baltimore was idle Yankees and NAT's back at it tonight, Garret Cole taking the mound versus Patrick Corbin Mets coming off and off day there in Arizona tonight facing the Diamondback Sean and Aya is on the hill for the Mets facing Eduardo Rodriguez Metts starring the day three games back at the Atlanta Braves to the final National League Wild Card slot.
NFL cut Day is today.
All teams must pair their rosters from ninety to the fifty three men they'll be carrying into the regular season. The year's final Grand Slam in tennis, the US Open, getting underway in New York, with defending women's champions second seed Coco Golf moving on to the second round in straight sets along the third seeded Arena Sablenka. Top ced Gus fiat Tek plays for first round matches afternoon versus
Camilla Rakimova. In the men's draw, second seed Novak Djovkovic beginning his quest for his twenty fifth Grand Slam trophy with a straight sets win. Top seed Gyanick Center and third seed Carlos al Karaz They begin their tournaments today. That's your Bloomberg Sports Update on Dan Schwartzman, Karen and Nathan.
Coast to coast on Bloomberg Radio nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. San Francisco. Fed President Mary Daily says it is time for the Federal Reserve to cut interest rates. She is just the latest Fed official to echo J Powell's duvish Jackson Hall remarks. Speaking with Bloomberg's Michael McKee. Daly said she thinks rate cuts are coming next month in part because of concerns about the labor market. We now bring you part of their discussion.
We've been on this path of ready to adjust policy rates for several months. We just needed to get a little more confidence and inflation was truly on its path to two percent, and I wanted to see the labor market come into balance. But I think that's completely happened and the risk to our goals are now balanced in the time to adjust policy is upon us.
Is there anything that could derail in September, So.
In my mind that would be hard to imagine. At this point, I do see that adjusting policy is appropriate. We don't want to get ourselves into a situation where we're keeping policy highly restrictive into a slowing economy. And remember, every time inflation comes down, the policy gets more restrictive. And I think that's a recipe, if you will, for overtightening and injuring the labor marketing growth.
Well, the Chairman and basically the Open Market Committee said coming out of the meeting that the downside risks are greater to unemployment than to inflation. How big are the downside risks to employment right now?
So we definitely have to keep that in mind, because, as you know, the labor market, when it starts to adjust, often has adjusted abruptly and significantly. But right now we don't see any signs of that. You look at initial claims for unemployment insurance, you look at early indications of layoffs. They're just not present, and so that's not giving us any signs that there's a deterioration. Importantly, as you know, the Reserve Bank presidents spend a considerable amount of time
talking to contacts, businesses, workers. We're really not hearing signs that firms are poised for layoffs. What they are doing is managing headcount, making sure that they really want to refill a job before they do it. But at this point,
I don't see any morning signs of weakness. But we want to make sure that we are adjusting policy as we go so that it's ready for the economy we have and for the economy we're likely to get, and ensure that we don't end up in that situation where we see real weakness.
All right, let's talk about tactics.
Markets are now pricing one hundred basis points it cuts by the end of the year, but there are only three meetings left, which would imply at least one to fifty basis point cut. Do you think the markets are wrong or is a good possibility we see a fifty somewhere.
Well, I think.
Everyone's looking at the economic projections and then making a decision. For me, what I'm going to be doing is looking at the incoming information. As you said, we have another CPI, another labor market report discussed with my colleagues, talk to our contacts and fashion the policy that's right for the economy that we see. So it's too early to know
exactly what the tactics will be. We do know one thing, the direction of changes down, and we need to do it in a way that is responsive to the economy and not let the economy get in a position of weakness.
Well, let me quote the FED back to you.
If the economy evolves as we expect, as you always say, would that imply a twenty five basis point cut in September versus fifty.
So I think of it as his scenarios, if I may so, the scenario that is my most likely outcome, and what I see in the data and the projections is that we continue to get gradual slowing in inflation, and we continue to get that study sustainable pace of growth in the labor market. If those things happen, then
adjusting policy at the regular normal cadence seems reasonable. But if we see a further deterioration or we haven't seen any deterioration yet in the labor market, if we should see deterioration or any signs of weakness, then being more aggressive to ensure that we don't see that it would be appropriate. So I think it's too early to know, and I don't want to make a declaration when none is necessary. The direction of changes down and the time to adjust is now. In my opinion, some.
Of your colleagues at the regional banks told me in Jackson Hole that they want to see a methodical, step by step process and that companies want to see that as well. What markets are reading into a little bit of what Jay Pile said when he did not or did not say because he didn't use the word patient, do you think that there is a sort of bias to maybe do more if the labor market is a little bit weaker than anticipated.
Well, let me speak about myself. And I see further signs that the economy or the labor market is slowing, is unwelcomed, and I do not want to see that. That's a that's not what we're looking for. We're looking for, and the Chair said this in this speech. We're looking for inflation to come down, can be sustainably down to two percent, and for the labor market to stay right about where it is. We don't want to see additional
weakness because that's actually what we're trying to prevent. Ultimately, have two goals, christability, full employment. We're trying to get those two goals to simultaneously exist, and adjusting the policy rate to ensure that happens is what we will need to do.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington. Bloomberg one oh six to one in Boston and Bloomberg ninety sixty in San Francisco.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Listen coast to coast on the Bloomberg Business app, Serious XM, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow.
Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak